BDC Provides Guidance on Setting Up Employee Benefits Plans

The Business Development Bank of Canada (BDC) has published a guide for companies on how to set up employee benefits plans. The resource highlights the importance of these plans as a competitive tool in attracting and retaining staff, particularly in industries facing labor shortages.

According to BDC, benefits such as extended health care, dental coverage, and retirement savings are crucial for making an employer attractive. These, combined with competitive salaries, form a total compensation package that can significantly influence recruitment and retention efforts.

The guide distinguishes between legally required benefits, such as holiday pay and workers' compensation, and voluntary benefits that employers choose to offer. These voluntary options, like health and pension plans, provide opportunities for companies to differentiate themselves from competitors.

BDC advises businesses to first determine their objectives for the benefits plan and then survey their employees to understand their specific needs. The bank notes that different employee demographics, such as younger professionals and those with family responsibilities, have varying requirements.

To manage costs, BDC suggests strategies like promoting generic drug use and increasing the employee's share of premiums. Implementing wellness programs focused on preventative health, smoking cessation, and mental well-being can also help control rising benefits expenses over time. The guide also encourages considering creative, lower-cost benefits such as flexible work hours or remote work options.